marta123
Level 1
‎November 12, 2020 01:56 PM

How to record a cash transaction - rent payment?

Hello,

 

I need help recording a few transaction in QB on line.

My boss received $1000 in cash (rent payment for an apartment - he is a co-owner of the building - the building is owned by LLC). This transaction is not recorded in QB.

(He put the money in his pocket).

Latter on, he wrote a check in the amount of $1000 using his personal bank account to transfer money to LLC. This transaction is recorded in QB, the bank account in link to QB.

Please, I need advice how to recorded that he receiving the cash.

Which account should I credit, which account should I debit.

 

I will appreciate any suggestion.

Thank you

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john-pero
Community Champion
Community Champion
‎November 12, 2020 06:42 PM

Account management

Start by recording the proper rent payment (in cash) from the tenant.  If you use Undeposited Funds, make a deposit to a dummy cash clearing account, then post a payment out from Petty Cash to this Member Draw account. His personal check back to company is Member Contribution or a reverse of the Draw. This is the proper workflow.

 

Or you could treat his personal check as the tenant payment

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marta123
Level 1
‎November 16, 2020 11:13 AM

Account management

Thank you for you respond.

The way you suggested to record those transaction look the proper way.

I'm traying to avoid to record a member draw (Latter on on the 1065 Return of Partner Income -schedule K-1, will show that my boss contributed more than the other member). I have separate QB on line for LLC and it won't match. His personal -member draw will be different from contribution on the LLC side.

 

You also suggested that I could treat his personal check as the tenant payment. I think in this case it will look like he is paying somebody's rent. 

Any different idea how to properly record those transaction?

I will appreciate any feedback.

 

Thank you  

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